BOSTON, U.S. - The industrial conglomerate, General Electric has said that it would cut 12,000 jobs from its power division worldwide as it tries to reduce costs.

The company has said that it is trying to reduce costs as it is looking to improve its global competitiveness.

GE has blamed a series of challenges facing the power sector worldwide, including overcapacity, growth in renewable energy and the “softening” of traditional power markets.

Russell Stokes, the head of the company’s power division said in an official announcement, “This decision was painful but necessary for GE Power to respond to the disruption in the power market. We expect market challenges to continue, but this plan will position us for 2019 and beyond.”

With GE getting a new chief executive, John Flannery, the announcement has come amid a wide-ranging shift at the company.

It is already seeking to streamline a conglomerate with stakes in sectors ranging from light bulbs to medical imaging equipment and jet engines.

According to the company, the job cuts in its power division would help GE save $1 billion, which is part of an overall effort across its businesses to reduce costs by $3.5 billion in 2017 and 2018.

Recently, Flannery announced that the company would be shedding several businesses in the coming years.

Some of these businesses that would be done away with could reach back to the days of its founder, Thomas Edison.

Last month, GE announced that it would cut its dividend, only the second time it has done so since the Great Depression.